The bill introduces a new section to the Uniform Commercial Code (UCC) in Washington, allowing debtors to terminate unauthorized financing statements through an administrative process. A debtor can submit a sworn affidavit to the filing office, asserting that the financing statement was not authorized and does not reflect a valid security interest. The affidavit must include specific details such as the financing statement's file number and the names and addresses of the debtor and secured parties. Upon receiving a valid affidavit, the filing office will notify the secured parties and may file an administrative termination statement after 30 days, which becomes effective upon filing.

Additionally, the bill amends existing laws regarding the filing and maintenance of financing statements. It clarifies that the filing office can file an administrative termination statement based on the debtor's affidavit and outlines the conditions under which the filing office must maintain records of financing statements. Notably, if an administrative termination statement is filed, it is exempt from the one-year maintenance period, allowing the filing office to remove the financing statement after 60 days. The act is set to take effect on September 1, 2026.